If you`re a landlord in Ontario looking to hire a property management company to take care of your rental property, it`s important to have a well-written and comprehensive property management agreement in place. This agreement outlines the responsibilities and obligations of both parties, and can help prevent misunderstandings and disputes down the line.
If you`re not sure where to start, don`t worry – we`ve put together a sample property management agreement for Ontario landlords. Keep in mind that this is just a starting point, and you should always consult with a lawyer to ensure that your agreement complies with all relevant laws and regulations.
Here are some key components to include in your property management agreement:
1. Services Provided: Specify the scope of services that the property management company will provide. This may include things like tenant screening, lease preparation, rent collection, maintenance and repairs, and eviction proceedings.
2. Owner Responsibilities: Outline the responsibilities of the property owner, such as maintaining the property in good condition, providing necessary funds for repairs, and complying with all applicable laws and regulations.
3. Fees and Compensation: Clearly state the fees that the property management company will charge for their services, and how they will be paid (e.g. a percentage of rent collected, a flat monthly fee, etc.).
4. Term and Termination: Specify the duration of the agreement (e.g. one year), and how it can be terminated by either party. Make sure to include any notice requirements or penalties for early termination.
5. Insurance and Liability: Outline the insurance coverage that the property management company is required to maintain, and specify how liability will be allocated in case of damages or other issues.
6. Dispute Resolution: Include a clause outlining how any disputes between the parties will be resolved (e.g. through arbitration or mediation).
Keep in mind that this is just a basic outline of what should be included in a property management agreement. Depending on your specific circumstances, you may need to include additional provisions (such as maintenance schedules or specific rent collection procedures).
Overall, it`s important to work with a qualified lawyer to draft a solid property management agreement that protects your interests, and ensure that both parties have a clear understanding of their roles and responsibilities. With the right agreement in place, you can feel confident that your rental property is in good hands, and focus on other things knowing that your investment is taken care of.